The Kurdistan Region’s strongest political party on Thursday slammed Baghdad for its decision to stop paying the Region’s civil servants. The Kurdistan Democratic Party (KDP) also warned it may take a serious stance if the Iraqi government fails to release the Region’s financial entitlements by June 6.
In a sharply worded statement, the KDP accused the federal government of continuing “to violate the constitutional rights of the Kurdistan Region,” adding that the latest violation is the Iraqi finance ministry’s decision on Wednesday to cut the Region’s funding.
The KDP further warned that “if the rights and financial entitlements of the people of the Kurdistan Region,” including public employee salaries, “are not sent before Eid al-Adha [on June 6], we will take a serious stance and announce it.”
Iraqi Finance Minister Taif Sami claimed on Wednesday that the ministry is “unable” to continue financing the Kurdistan Region, alleging that Erbil has exceeded its 12.67 percent budget share set by the 2025 Federal Budget Law.
In an official letter to the Kurdistan Regional Government (KRG), Sami said that Erbil exceeded its allocated share by 13.547 trillion dinars (10.34 billion), adding that under Iraq’s Federal Supreme Court decisions, further funding in such circumstances is prohibited.
Sami further added that the Region’s oil and non-oil revenues from 2023 until April of this year amounted to 19.9 trillion dinars (15.19 billion); however it only transferred 598.5 billion dinars (456.87 million) to the federal government.
Importantly, the finance ministry was expected to pay the salaries of civil servants in the Kurdistan Region for the month of May ahead of the Muslim holiday on June 6.
Sherwan Dubardani, a KDP member of the Iraqi parliament, told Rudaw on Wednesday that “the audit process for the salary lists of employees and beneficiaries in the Kurdistan Region has been completed,” and anticipated that salary distribution would occur before Friday.
However, the finance ministry’s recent decision has effectively brought the process to a halt.
The KDP on Thursday censured Sami’s decision, calling it contradictory to “the constitution and the principles of the government formation agreement,” and said it “reflects the politicization of the people's funds.”
Importantly, the KDP is a key member of the governing State Administration Coalition, which includes the Shiite-led Coordination Framework, the Sunni Sovereignty Alliance, and the Patriotic Union of Kurdistan (PUK).
The coalition’s September 2022 formation was marked by the nomination of Mohammed Shia’ al-Sudani as prime minister and it currently holds 275 of the 329 seats in the Iraqi parliament.
In the lead-up to the formation of the Coalition, Kurdish parties, namely the KDP and PUK, outlined several key demands to ensure their participation and safeguard the Kurdistan Region's constitutional rights.
The Kurdish parties’ demands included implementing the Oil and Gas Law, ensuring timely payment of the Kurdistan Region’s financial entitlements, recognizing Kurdish constitutional rights, and protecting disputed territories such as the oil-rich city of Kirkuk. In light of the finance ministry’s recent decision, it remains to be seen whether the KDP will consider withdrawing from the governing coalition.
Rudaw has learned that the KRG’s finance ministry will respond to Sami’s claims soon.[1]